Why your company needs a “data asset strategy“. Do or do not, there is no try!
In the last decade, the number of times “data” is referred to as the new gold, oil, soil, etc. in presentations and conference talks have exploded. Additionally, the research firm “Gartner” predicts that by 2022 companies will be valued mostly based on their information portfolios.
Facebook, Google and other tech companies already understand the true value of data and consider it as their most valuable asset. Finally, more and more industries are also beginning to rethink their strategic view on data and how they can derive future business value out of it.
In the following blog post, you get to know why a “data asset strategy” makes sense for your company. We describe the motivation for upgrading your data to true corporate assets, what might be the possible requirements for that and also propose the 3 major data asset classes.
Data will be the #1 asset in a data-driven future
At Tributech, we believe that if a company’s strategy depends more and more on deriving value from data. The management, the board and also the investors should (and will) keep an eye on a new asset class – the data portfolio of the company.
Therefore, companies need to derive a “data asset strategy” from their company’s strategy to align management and handling of data with the future value creation process. It will also help to better define data security & sharing policies, allocate data-related budgets and investments based on the future strategy and demonstrate a true transformation to a data-driven future for all involved stakeholders.
Introducing 3 major data asset classes
Most executives refer to the different data sets available in their company as just “the data”, but in our opinion, it needs to be categorized into different data asset classes to really derive business value out of it.
There are 3 major asset classes which can be identified within a company:
- Operative data: data that is necessary for operating the current business
- Strategic data: data that can be used for deriving insights for new products or services
- Monetizable data: data that is not of great value for the company but has a huge value for other stakeholders
Based on these 3 asset classes, companies can define responsibilities and internal priorities for optimizing the value out of each specific asset class.
The responsibility for operative data should be aligned with the ongoing value creation process for the current business operations. Strategic data is in the responsibility of the R&D department or the uprising digital offices. For monetizable data, the company can establish new revenue streams by trading this data with partners, suppliers, competitors or even publish them on data marketplaces.
Additionally, by “upgrading” their data to assets companies can use several asset classes as a security deposit or even capitalize it on their balance sheets in the future.
Possible requirements for qualifying data as an asset
In our opinion, there are several requirements that need to be met to qualify something as an asset from a business perspective:
- Proof of ownership and origin: Data collected by IT systems needs to be auditable to verify its origin and uniqueness. If data is shared by 3rd parties, it needs to be synchronized based on a sharing agreement to document ownership.
- Tamper-proofness: Need for data integrity checks across systems starting at the data source to monitor for unauthorized changes.
- Share- or tradeable: For deriving value out of assets, they need to be “moveable” and therefore be shared or traded with other parties.
- Assessable: For defining something as an asset it needs to be allocated with an objective value.
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Define your company’s data asset strategy
Curious about how a data asset strategy can help your company accelerate business? Or what possibilities already exist for capitalizing data as corporate assets? >> Click here to arrange an online meeting with our CEO Thomas Plank and talk about the future of a trusted data economy and how your data can be transformed into reliable corporate assets.<<
Our technology helps you to qualify your data as corporate assets
Our product acts as a software-based notary service for qualifying data as corporate assets – no matter if sensor, process or even usage data from applications. Therefore, the product helps companies to fulfill all of these requirements and form the basis for qualifying their data as corporate assets in the future. >> Click here for more details about our technology .<<
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Alexander Sztatecsny, who has been working in different areas of Digitalization across the value chain for most of his business life, has recently joined the team of Tributech as COO and Managing Partner and will work with the team to elevate the business to the next level.